For those who know anything about blockchain, it is not just a way of performing secure and fast digital payments, but beyond that, blockchain has a vast world of innovative applications in a range of industries, including e-commerce.
Blockchain is a decentralized technology that provides a way to perform digital transactions in a totally peer-to-peer fashion. Theoretically, blockchain can be used for performing almost any kind of digital transactions, not just the monetary ones, however, most of the present applications or projects on bitcoin are based in the Finance industry.
“If used right, blockchain can effectively disrupt the ecommerce industry, making processes more efficient and reducing the overall cost.”
The e-commerce industry while being one of the fastest-growing sectors today still faces many challenges in the form of high platform fee, payment fee, privacy risk, lack of security, and centralized dominance. Implementing blockchain in the ecommerce space will not just help solve these issues but also make the overall e-commerce system more efficient and cost-effective.
One of the best, modern examples of blockchain-based e-commerce is the Libra Ecosystem, which through its innovative solutions aim to help improve the experience of e-commerce businesses and users.
Here are 5 ways blockchain can disrupt the ecommerce industry for good:
Implementing blockchain into e-commerce will essentially mean the decentralization of the way e-commerce transactions are performed. And we are talking not just about digital payments but also peer-to-peer trades, secure wallets, improved user privacy, and more.
1. User Privacy
One of the biggest benefits of the Libra blockchain e-commerce system is improved user privacy. Based on blockchain, the e-commerce platform uses decentralized technologies & applications such as Smart Contracts to facilitate truly peer-to-peer transactions between users, thus avoiding the need to share the user data with any intermediary or third-party. Also, the built-in payment method ensures secure & fast transactions in a completely transparent manner, while the blockchain protects the identities of the users/traders.
2. Improved overall supply chain
By providing a better, more secure and transparent way of record-keeping, order tracking and payments, blockchain can effectively improve the overall efficiency of the e-commerce supply chain.
3. No Middleman Cost
One of the best benefits of blockchain is, of course, the lack of middlemen in transactions. Using smart contracts, the Libra blockchain allows e-commerce users to trade directly, thus reducing the cost of a middleman. The smart contract automatically verifies and processes transactions in the network and also reduces the probability of fraud or duplicate transactions, which speeds up the overall process.
4. Secure globally payments
Traditional payment gateways that are controlled by centralized entities such as banks and card companies are not only complex but also charge a huge fee/commission per transaction. Cryptocurrency transactions on a blockchain, on the other hand, are quicker and cost-efficient, as the fee per transaction is nearly zero and payments are processed instantly.
5. Easy dispute resolution
One of the biggest challenges of the traditional e-commerce system is the transparent resolution of disputes. Because of the lack of proper receipts and proofs, consumers many times end up with a loss. Blockchain e-commerce will solve this issue through its transparent and real-time record-keeping (ledger) system, where verifying transactions or a record is as easy as anything.
Overall, the blockchain-based Libra e-commerce system is faster, cheaper and much more efficient as well as it eliminates the role of middlemen in commerce transactions, thus adding security and reducing the cost.